“No Gas Day” Probably a Bust
Update (5/15/2007): Greetings search engine visitors! Since the beginning of May this old post has been getting a ton of traffic. It turns out I’d ended up as a top search result for ‘no gas day,’ which is apparently incredibly popular this year. In response to the renewed interest, I’ve written an updated post about No Gas Day, why it won’t work, and how to lower fuel prices.
I received this in an e-mail from a friend Friday:
MAY 19 — NO GAS, 22:58:18 05/11/04 Tue
IT HAS BEEN CALCULATED THAT IF EVERYONE IN THE UNITED STATES DID NOT PURCHASE A DROP OF GASOLINE FOR ONE DAY AND ALL AT THE SAME TIME, THE OIL COMPANIES WOULD CHOKE ON THEIR STOCKPILES.AT THE SAME TIME IT WOULD HIT THE ENTIRE INDUSTRY WITH A NET LOSS OF OVER 4.6 BILLION DOLLARS WHICH AFFECTS THE BOTTOM LINES OF THE OIL COMPANIES
THEREFORE MAY 19TH HAS BEEN FORMALLY DECLARED “STICK IT TO THEM DAY” AND THE PEOPLE OF THIS NATION SHOULD NOT BUY A SINGLE DROP OF GASOLINE THAT DAY.
THE ONLY WAY THIS CAN BE DONE IS IF YOU FORWARD THIS E-MAIL TO AS MANY PEOPLE AS YOU CAN AND AS QUICKLY AS YOU CAN TO GET THE WORD OUT.
(and so forth…)
There are several reasons this wouldn’t really work, mostly having to do with the way supply and demand works in a free market economy. The Urban Legends Reference Page (snopes.com) has a pretty good breakdown on the topic.
A more reasonable way (indeed, the only way) to have a true and lasting impact on gas prices in this country is to curb our consumption over the long term. This will increase supply relative to demand, and force prices down. It’s also better for the environment than a one-day “gas out.”
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no gas day, gasoline, oil companies, gas prices, supply and demand, environmentalism
No gas Sundays?!? That doesn’t make any sense; if someone doesn’t buy gas on Sunday, they will just buy it on Monday or some other day of the week. They will use the same amount of gas…so explain to me how not buying on Sunday will help??? It won’t change anything. Oil companies could care less which day you buy gas on…they just want you to buy it. This “No Gas Sunday” will not work…people will just buy gas on a different day so that they are never low on gas on Sunday.
Comment by Grady — September 6, 2005 @ 9:36 pm
I think the best way to control prices during this time of crisis is to have our government a SAY in this matter.
If our government not gonna take any action during crisis time then when?? If our presedent can take all power to decide about the war in his hands and convey his idea to people million times through media then why he is not so serious about the GAS price issue and take same action, when entire country is getting burned by these gubernatorial GAS companies. Why do they have so much of profit margin (70 - 80 cents/gallon) when its needed by every individual every day. If consumption of gasolline is so much and its so crucial for entire people of nation, I think we need to have some control on its pricing otherwise these profit creazy corporates will suck us dead through those gas nozzles.
The best solution at the moment is.
1. Govt. reduces its tax.
2. Price control by government by limiting the profit per gallon to 10-15 cents
3. if necessary limiting consumption per household by intoruducing gasolline card.
Comment by Mahaveer Degaonkar — May 18, 2006 @ 11:44 am
I don’t think that government intervention is the answer unless that intervention involves (1) penalizing the gas companies for profiteering or (2) ending our dependence on fossil fuels. Preferably the former.
This is one of those problems so big and so onerous that private industry isn’t going to take it on. There just isn’t enough up-front profit motive for them to bother. In these cases, governments can step in and really do some good.
There’s no good reason why we shouldn’t see gas-powered cars on the way out within at least the next ten years. As they used to say in the opening of each episode of “The Six Million Dollar Man“: we have the technology.
Comment by Adam Messinger — May 18, 2006 @ 1:30 pm
I think that it is important that we all remember that “sticking it to them day” would only hurt local business owners who only make 1-2 cents per gallon if that.High gas prices are nobodys fault but your local government who puts the tax on them.
Comment by Abigail — April 8, 2007 @ 7:01 pm
Gov’t intervention only destroys the laws of Supply and Demand. Exxon/Mobil in their latest filing estimated they plan to spend $20 billion for exploration for new oil this year. If you cap the amount of money that they can make, what is their incentive to find more oil. Since Americans have continually showed a reluctance to move away from gasoline, lowering the price is only going to give them less incentive to switch. Profit margins for oil companies are no higher than they are for many industries, and much lower than they are for several. The huge profits are generated from huge sales, not from profiteering.
Comment by Tom Dwyer — May 2, 2007 @ 2:30 pm
Obviously, if it hasn’t worked in the past 4 years, it ain’t gonna work this time, either.
Comment by Willys — May 3, 2007 @ 4:51 pm
Abagail said:
That’s a good point. The gas station owners out there aren’t exactly making a fortune. Not off the gas, anyway.
That’s not entirely true. Gas prices are already pretty darned high, taxes just add more onto the burden. It also isn’t as easy as “just lower gas taxes.” Taxes on gasoline, cigarettes, and booze are sometimes used in place of income tax increases as less-unpopular ways to balance state budges. They’re big fans of that approach here in Kansas.
Tom Dwyer said:
I don’t think that’s necessarily true. Careful intervention can modify the effects of supply and demand, without abolishing the principle. Many industries in this country are regulated, some more than others. Nevertheless, the free market system keeps on ticking. Capitalism is more durable that you’re giving it credit for.
And the huge sales are driven by our nation’s complete dependence on oil products like gasoline and diesel. Without the oil industry transportation in America would grind to a halt, crippling our economy.
We can’t not buy it. We’re junkies for it. The oil companies know this, so they charge as much as possible.
Is massive regulation the answer? Probably not. I think massive research and development efforts into alternative fuels is the answer. When Americans can buy an electric or hydrogen-powered car that costs less to own than a gas-guzzler, we’ll see real change.
Willys said:
Bingo.
A bit of much-needed perspective: Once you adjust for inflation, gas prices aren’t quite as alarming. The current all-time high $3.22 of today’s dollars per gallon, back in March of 1981. On Tuesday, the nationwide average was $3.04 per gallon. We’re getting close.
Of course, all that averaging and inflation adjustment doesn’t make me feel any better when I pay $45 at the pump.
Comment by Adam Messinger — May 10, 2007 @ 8:45 pm
The only method that will truly work would be if everyone boycotted a specific gas company for a month. For example for the month of June Speedway gets the boycott and no one buys gas at any Speedway location, July BP Amoco gets the boycott, August, Shell gets the boycott, Sept. Marathon, Oct. Citgo and so on…..
I really believe if we put this boycott together correctly and got media attention gas price will plummet. This no gas day will just force more people to the pump the day prior and the day after. You have to start hurting “big oil” like they are hurting us, in the wallet and one at a time. Mark my words it will work!!!!!!
Roger D. Lis
Culinary Arts
Thornridge High School
Comment by Roger Lis — May 11, 2007 @ 10:12 am
Hi Roger,
A month-long boycott of a single gas company might bite their profits enough to hurt, but I don’t think you’d ever get the participation rate high enough for it to work. People just aren’t inconvenienced enough (yet) to bother with that much effort.
Even if you could get a significant number of people on board for a single-company boycott, pulling it off isn’t as easy as it might seem. Not every gas station is operated by an oil company. Convenience stores like QuikTrip and 7-11 sell gasoline, but who do they buy it from? Do all their stores have the same supplier, or does it vary from franchise to franchise?
This is a complicated problem that needs a multi-faceted solution. I know people are pissed off and want to lash out at the oil industry, but a simple “stick it to ‘em” approach just won’t work.
Comment by Adam Messinger — May 11, 2007 @ 4:34 pm
Please let me point out that a boycott of a single oil company for a month is useless. First of all, in order for a boycott to be effective, you actually have to decrease your consumption of the commodity. Moving your purchase from Speedway to BP only means that BP is going to sell more gas, and where are they going to get that extra gas? They’re going to buy it from somebody that has extra gas…say Speedway. In order to affect an industry, you have to boycott that industry, not just the individual companies in it.
Comment by Tom Dwyer — May 11, 2007 @ 11:21 pm
Good point, Tom.
Comment by Adam Messinger — May 12, 2007 @ 6:20 pm
[…] I don’t remember how I first received the No Gas Day e-mail in 2004. According to Snopes.com, this call to action has been circulating in some form since 1999. This year, it’s more popular than ever. The problem with No Gas Day is that, good as it sounds, it won’t actually hurt the oil companies or drive down prices. […]
Pingback by No Gas Day Won’t Work. Here’s What Will. (8 Ways to Sunday) — May 14, 2007 @ 12:59 am
Some have commented that boycotting a single oil company will be ineffective. But on my own website I note to boycott a convenience store. This may not have an effect on gas prices overall, but it is a way for the consumer to take out their rage on those companies that are first to raise prices. Otherwise people fall for the “no gas day” baloney or beg the government to step in, both of which are ineffective.
Please read my “Boycott” essay here.
http://www.spongedaddy.com/SpongeOsophy/BOYCOTT.html
Comment by SpongeDaddy — May 16, 2007 @ 11:30 am
If convenience store owners make their money from in-store products instead of gasoline, how does boycotting those products hurt the oil companies? The oil companies are still selling gas, so you’re only hurting the convenience store owner.
Maybe I’m missing something here, but your proposal doesn’t seem to make a bit of sense. If we want the crazy gas prices to stop, we’ll have to make oil obsolete.
Comment by Adam Messinger — May 16, 2007 @ 1:49 pm
Actually Adam, the mom and pop stores make the money from gum, etc. Speedway is a subsidiary of Marathon oil…so they get their gas cheaper than Mom & Pop. But that is beside the point, putting Speedway into bankruptcy would put a dent in the pocket of Marathon oil, would it not?
And I totally agree about making oil obsolete. I think it is a shame that the Amtrak system in this nation has been let to go to crap, while airlines get bailout after bailout at taxpayer expense.
I would totally accept a surtax on gasoline just to subsidize mass transit.
I walk when I can, and I refuse to fly. However, the nearest Amtrak station to my home is 3 hours away.
I have not driven my vehicle for four days, I am doing all I can.
In the meantime, the consumers need a way to vent their anger…or soon the government will be setting price controls. Once that happens, there will be no turning back.
One of my fans has been involved with alternative fuels for about 20 years. Vic tells me that there is no way, politically, that we will switch to them in our lifetimes. The oil lobby is too powerful.
Be well,
Sponge
Comment by SpongeDaddy — May 16, 2007 @ 3:11 pm
The only way to beat the oil companies is to invest in alternative fuels. Period. However, ethanol is not that great. If every stalk of corn in the USA were used for ethanol, it would only be able to make up for 12% of the gasoline used. Even worse, considerable energy is lost in CREATING ethanol from corn, to the point where there is no energy gain whatsoever, just loss. Both oil and ethanol are losers.
The only realistic hopes that I have heard of in terms of alternative fuels are electric cars and hydrogen fuel cells. The problem with electric, however, is that we simply have too much of our electric grid using coal. What will result is that you will have more fossil fuels being emitted from coal, rather than oil. The way this could be remedied is by nuclear power. More solar and wind farms won’t cut it. It is too bad, though, that all the radical environmentalists, most of who know very little of economics, won’t let them get built.
Another problem with electric cars is that their batteries will eventually lose charge over time, meaning that each recharge gradually holds less and less power.
Now that we are down to hydrogen fuel cells, I do have to admit that it will require a considerable investment. However, it yields no pollution whatsoever. The fuel cell battery also does not require recharging. It is realistically the only sustainable, permanent fuel solution for America, unless of course the majority of the electric grid switches over to Nuclear.
Comment by mad dog — May 21, 2007 @ 10:55 am
@mad dog: See comment number 4 on this post for some of the drawbacks and pitfalls of hydrogen power. I agree that it’s promising, but it’s far from perfect.
As for the electric grid going nuclear, I think that’s a terrible idea. Fusion power simply doesn’t work yet, and fission produces toxic byproducts that remain dangerous for centuries.
Comment by Adam Messinger — May 28, 2007 @ 3:23 pm
If the USA stood still for 1 day, meaning every red blooded american stayed home on any given day,no police, no mail, no trucks, no groceries, no parties, no cabs, no buses, etc. The impact would be huge, the polution factor, the gas consumption, the crime, the death rate of traffic accidents, no road rage, etc; Not a very easy plan to make work, however, it would sure as heck work.
Comment by Johnny Carroll — July 16, 2008 @ 1:13 pm